BAKU, Azerbaijan, Jan. 14
By Nargiz Ismayilova - Trend:
Azerbaijan is one of the most reforming and stable countries in the world, Trend reports referring to Executive Director of Azerbaijan’s Center for Analysis of Economic Reforms and Communications Vusal Gasimli.
“Our main success is socio-political and macroeconomic stability, social welfare and sustainable economic growth,” Gasimli said. “With the Azerbaijan’s strategic foreign currency reserves of $51 billion and 110 percent of GDP, external debt was equal to 17 percent of GDP. Azerbaijan’s strategic foreign currency reserves are sufficient to finance 38-month imports. The budget surplus in both the payment and the consolidated budget balance is the basis for our macro-economic stability and sustainable development.”
The executive director noted that in 2019, GDP growth in Azerbaijan over the past five years has grown by 2.2 percent, and non-oil GDP production - by 3.5 percent, that is, higher than world economic growth rates.
“Non-oil industry grew 14 percent, crop production -10 percent, information and communication services - 15 percent, tourism - 11 percent, and became the drivers of economic growth,” Gasimli added. “Tourism revenues alone reached 4.3 billion manat ($2.5 billion), which is 35 percent more than the volume of non-oil exports."
The revenues from the Formula 1 Azerbaijan Grand Prix on the country’s economy amounted to $309 million in 2019, he said.
“The demand for business reforms, revolutionary social package and management reforms increase the effectiveness of institutions and accelerate economic growth amid rising global oil prices and investments in the non-oil sector,” said the director.
“Azerbaijan has become a state of social welfare,” Gasimli noted. “That’s because growing opportunities of the economy and budget are aimed at improving the welfare of the population. Azerbaijan, as a whole, is successfully achieving the UN Millennium Development Goals, and in particular - sustainable development. The social package implemented in 2019 covered 4.2 million people, and 2.3 billion manat ($1.3 billion) was spent on these purposes.”
The director added that in 2019, as a result of tax and customs reforms and the fight against the “shadow economy”, the state budget received additional funds in the amount of 1 billion manat ($588.2 million) more than was forecasted.
The loan portfolio of the banking sector, assets and deposits, book capital increased, while external debt decreased, said Gasimli.
“In a Doing Business report by the World Bank, Azerbaijan’s credit rating reached the indicators of 20 most reforming countries; Moody’s set Azerbaijan’s credit rating at Ba2, a stable level, and Fitch affirmed it,” the director noted. “Last year, the International Development Association officially awarded Azerbaijan the status of a donor country in the international arena.”
“Last year, reforms were carried out in all directions: economic, social, managerial and personnel,” Gasimli added. “The biggest reforms during the period of Azerbaijan’s independence took place in 2019.”